A New “Tax” for the Local Accommodation
Recently, the government has implemented measures to limit the number of houses exclusively dedicated to short-term rentals, making more local lodging establishments available for residential purposes. These measures are included in the Mais Habitação package, and also in Law No. 56/2023 which was published on the 6th of October.
Owners of local accommodation establishments will have an extraordinary contribution to make, which operates like an extraordinary tax. This contribution applies to all local accommodation units with the appropriate licence and paperwork. However, there are some exceptions to this general measure for local accommodation establishments. The contribution is only applicable to apartments, and exceptions include:
- Local accommodations located in territories in the interior of Portugal;
- Local accommodations that are used as permanent accommodation. In this case, the proprietors must prove that the short-term accommodation does not exceed 120 days per year.
- Residential houses that are not autonomous parts or fractions suitable for independent use.
The official name for this new contribution to local accommodation is CEAL, which stands for “Contribuição Extraordinária para o Alojamento Local”, or a special contribution to local accommodation in English. This new tax has a value of 15% and depends on various factors, such as the area of the apartment, the income generated from the local lodging business, the evolution of the leases, and the urban pressure in the location of the apartment. This contribution needs to be paid until the 25th of June of the next year, in this case, until 2024.
We expect that the tax authorities will clarify some practical aspects deriving from the implementation of this new contribution and will comment as soon as they are published.
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